Envoy Medical opens $6 million funding round

April 6, 2011 by MedCity News

Implantable hearing device maker Envoy Medical Corp. begins a $6.0 million equity round.

Envoy Medical

Envoy Medical Corp. hopes to raise $6.0 million in an equity-based round, according to documents filed with the Securities & Exchange Commission.

The White Bear Lake, Minn.-based company is the maker of Esteem, an implantable hearing aid with no readily visible external components.

The FDA approved the Esteem in March 2010.

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The device, which is implanted behind the ear, requires invasive surgery and costs $30,000. Unlike traditional hearing aids, which amplify sounds with microphones, the Esteem converts eardrum-sensed vibrations into electronic signals, cleans them up with a sound processor and then converts them back into mechanical sounds.

Envoy has had many big-name investors, including Minnesota Timberwolves owner Glen Taylor and former Medtronic Inc. (NYSE:MDT) vice chairman Greg Nelson. A funding round that the company opened last May brought in $16.4 million for the device, which included $10 million from Starkey Laboratories, after a plug from conservative radio talk show host Rush Limbaugh.

Envoy CEO Patrick Spearman did not immediately return a phone call.

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